Chinese company KAI moved bulldozer into WA Ord Stage 2 to start developing the land for sugar

Tyne McConnon

There are major opportunities for Australian farmers to tap the Chinese market, as well as investment by China in Australian agriculture.

That was the message to 300 delegates at a conference in Perth, Western Australia.

The Western Australia-China Agribusiness Cooperation Conference also heard that China is the states biggest market for farm goods, valued at more than $1 billion in the last financial year.

The top commodities are wool, barley, canola, wheat, sheep skins and wine.

Looking at ways to break into that market are the dairy, beef, lamb and live cattle and sheep export sectors.

A Memorandum of Understanding (MOU) was signed between the Australian Livestock Exporters Council, Australian Livestock Exporters Ltd, Huatong Meat and other Chinese company representatives.

Under the MOU the parties agreed to work towards clarifying Australian and Chinese animal health and welfare protocols to pave the way for a live cattle export trade.

Western Australia has a sister-state relationship with Zhejiang Province, headquarters of one of China's biggest agricultural companies, Huatong Meat.

Chairman of Huatong Meat, Jianjun Zhu, says Australian beef and livestock has a very good reputation as being clean, green and safe.

"Please understand the beef consumption and demand in Zhejiang Province is really strong at this moment.

"And we would love to get another resource, the live cattle from WA, which is the best quality.

"As a leading ag company in my province, it is our responsibility to develop this market for Zhejiang people in order to get the best beef from the world to their table."

Dairy farmer and Western Dairy board member Ms Ruth McGregor pitched the Western Australian dairy industry as one that would welcome major investment from China.

A case study was presented by Anthony Wilkes, CEO of Ferngrove Wines, which has massively expanded its business since taking on a Chinese investor.

Minter Ellison lawyer Adam Handley specialises in Chinese mergers and aquisitions and is also the chair of the WA chapter of the Australia - China Business Council.

He says the potential is enormous and the challenge is for Australia to capitalise on it.

"One thing that's very pleasing in Western Australia is to see the Government going about engaging directly with China in the agricultural space in a very strategic way.

"Through lead agencies like the Department of Agriculture and Food WA and the Department of State Development, they're stepping back and looking at how they can engage with China on a very constructive way.

"They're asking 'how do we ready the state for the potential in Asian, and particularly Chinese, investment'."

In the north of WA in the Kimberley Region, a Chinese company is investing $200 million in a major agricultural project.

Kimberley Agricultural Investments plans to grow and mill sugar in the Ord River irrigation region and export it back to China.

General Manager Jim Engelke says dealing with KAI has been one of his best professional experiences.

But he's wary of claims that Australia can ever be the 'food bowl of Asia', a term coined by the former federal government when it released the Asian Century white paper.

And he says much more government investment will be needed to develop the northern part of Australia if it's to take advantage of agricultural markets.

"I don't think simply writing a white paper will develop the north or make agriculture more competitive.

"I'm certain the government at all levels will need to be closely involved in projects to make that work."

He says aiming to feed a market of literally billions of people in Asia and China isn't realistic, but there's still opportunity to massively increase farm exports.

"I think we should look at it from a different perspective.

"If we can achieve one or two per cent of that market share, I think that equates to a doubling or tripling of our current output of agriculture."And that's a seismic shift for Australian agriculture if we could achieve that."